Zydus to buy Complan, Glucon-D in deal with Kraft for Rs 4595 crore

Zydus to buy Complan, Glucon-D in deal with Kraft for Rs 4595 crore
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Mumbai, Oct 25: Zydus Wellness, a subsidiary of Ahmedabad-based pharma major Cadila Healthcare, announced entering into a definitive agreement to acquire the India business of US-based Kraft Heinz in a deal size valued at Rs 4,595 crore.
The buyout will give Zydus Wellness ownership of health and energy drink brands, Complan and Glucon-D, among others. The transaction also catapults Zydus Wellness into the top five health food and nutrition companies in India.
TOI first reported on the impending deal on October 11. Avendus Capital advised Zydus on the deal, while JP Morgan worked with Kraft Heinz.
“This acquisition is an ideal addition supporting our aspirations to grow in the consumer wellness space by providing multiple choices to the health conscious consumers,” said Sharvil Patel, chairman, Zydus Wellness, which owns brands such as Sugar Free, EverYuth and Nutralite.
Zydus Wellness will receive Rs 1000 crore infusion from parent Cadila to clinch the deal. It is also likely to raise Rs 1000-1500 crore equity from private equity investors True North and Multiples as reported by this newspaper earlier.
“Select private equity companies have also committed to partnering the transaction by way of equity support,” Patel said. The India portfolio of Kraft Heinz, the world’s fifth-largest food and beverages company, also consists of brands like Nycil and Sampriti Ghee as well as two manufacturing units at Aligarh in Uttar Pradesh and Sitarganj in Uttarakhand.
Deal gives Zydus global rights for Glucon-D, Nycil
Zydus Wellness will have consolidated revenues of Rs 1,700 crore. The four brands of Kraft Heinz clocked revenues of Rs 1,150 crore for the twelve months ending June 30, 2018. The deal gives Zydus Wellness global rights for Glucon-D and Nycil. For Complan, it has received rights for India and other substantial markets such as South East Asia, Middle East, SAARC countries among others.